Introduction

If your business is VAT-registered in the UK, you are legally required to submit VAT returns services to HMRC every month, quarter, or year depending on your VAT scheme. Many business owners face a common question:

Should I file VAT returns myself (DIY), or should I use professional VAT return services?

At first glance, DIY VAT returns might seem cheaper and more straightforward. However, VAT is one of the most complex areas of UK tax law. Mistakes can lead to penalties, lost VAT reclaims, HMRC investigations, and a huge waste of time.

In this blog, we compare DIY VAT filing vs professional VAT return services, explore the pros and cons of each, and explain why many UK businesses are choosing to outsource their VAT to experts like The Infinity Group.

Understanding VAT and VAT Returns

VAT (Value Added Tax) applies to most goods and services in the UK. If your taxable turnover exceeds £90,000 (2024/25 threshold), you must register for VAT and submit VAT returns.

A VAT return reports:
The VAT you charged customers (Output VAT)
The VAT you paid on business expenses (Input VAT)
The difference—either to pay HMRC or reclaim

Under Making Tax Digital (MTD), VAT returns must be submitted digitally using HMRC-compliant software.

Sounds simple, right? In reality, it’s much more complicated.

Option 1: DIY VAT Return Filing

DIY VAT filing means you (or your in-house team) manage everything, including bookkeeping, calculations, and submissions to HMRC.

Benefits of DIY VAT Filing

1. Cost Savings (Short Term)

You avoid paying for professional services—ideal if you're a very small business with simple transactions.

2. Full Control

You manage your finances directly and have full visibility over every number.

3. Good for Businesses with Simple VAT

If your business has:

• Few transactions
• No imports/exports
• No reverse charge VAT
• No multiple VAT rates
  You might handle it without issues—assuming you understand VAT rules.

Disadvantages of DIY VAT Filing

1. VAT is Complex

VAT is not just 20%. There are:

• Zero-rated goods
• Reduced rate (5%)
• Exempt items
• Domestic reverse charge rules (especially in construction)
• Flat Rate, Cash Accounting, Margin Schemes
  One mistake can cause big issues.

2. High Risk of Errors

Manual spreadsheets or basic software increase the risk of miscalculations, duplicated entries, or missing receipts.

3. HMRC Penalties

If you submit incorrect or late VAT returns, HMRC can issue penalties and interest. Errors— even accidental—can lead to inspections.

4. Time-Consuming

VAT return preparation involves:

• Tracking invoices
• Reconciling accounts
• Applying VAT rules
• Filing through approved software
  This takes valuable time away from running your business.

5. Stress and Pressure

VAT deadlines can be stressful. One missed submission may damage your reputation or cash flow.

Option 2: Using Professional VAT Return Services

VAT return services involve outsourcing VAT tasks to accountants or compliance specialists, such as The Infinity Group.

These experts:
Calculate VAT correctly
Prepare and submit VAT returns on time
Keep digital records (MTD compliant)
Handle HMRC queries if needed
Advise on VAT schemes and savings

Benefits of Professional VAT Return Services

1. 100% Accuracy and Compliance

Professionals understand VAT legislation and apply the correct rates, exemptions, and rules—reducing the risk of mistakes.

2. Avoid HMRC Penalties

Experts ensure deadlines are met and returns are error-free, protecting you from costly penalties, interest, and audits.

3. Saves Time

No more hours spent on spreadsheets, chasing receipts, or learning VAT rules. You focus on business growth instead.

4. Better Cash Flow Management

Experts ensure you reclaim all eligible input VAT and do not overpay VAT. They can also advise on the best VAT scheme:

• Flat Rate Scheme
• Cash Accounting Scheme
• Annual Accounting Scheme
• Margin Scheme
  The right scheme can save thousands.

5. Peace of Mind

You can relax knowing your VAT is handled properly and professionally.

6. HMRC Communication Handled for You

If HMRC has a question or launches an inspection, professional services manage everything on your behalf.

7. Tailored Advice for Your Industry

Specialist providers (like those experienced in construction, CIS, e-commerce, hospitality, etc.) understand industry-specific VAT rules

Disadvantages of VAT Return Services

1. Cost

There is a fee—but it is often small compared to the cost of penalties, missed VAT reclaims, or wasted time.

2. Sharing Financial Data

You must trust your service provider with your financial information—so choosing a reputable and experienced firm is essential.

DIY vs VAT Return Services: Side-by-Side Comparison

Conclusion: DIY may work for very simple businesses, but most UK businesses benefit from professional VAT support.

Which is Better for Your Business?

To decide between DIY and professional services, ask yourself:

Do you understand VAT rules fully?

If not, DIY could be risky.

Do you have time to manage VAT properly?

If you are busy running the business, VAT can become a distraction.

Does your business have complex VAT needs?

You definitely need experts if you:

• Work in construction (CIS / reverse charge)
• Sell products with different VAT rates
• Trade internationally
• Use margin or flat rate schemes
• Have high transaction volumes

Can you afford an HMRC penalty?

One mistake can cost more than a year of professional services.

If accuracy, compliance, and peace of mind are important—outsourcing is the better option.

Why Many Businesses Choose The Infinity Group

The Infinity Group, a trusted UK-based payroll and compliance specialist, offers professional VAT return services designed to save time, ensure accuracy, and protect businesses from HMRC penalties.

What The Infinity Group Offers:

Accurate VAT calculations
Quarterly, monthly, or annual VAT submissions
Full Making Tax Digital (MTD) compliance
Advice on the best VAT scheme
HMRC communication and support during audits
Digital record keeping and organisation
VAT registration and deregistration assistance
Specialist knowledge in construction, CIS, and payroll

Whether you're a small startup or a large contractor, The Infinity Group ensures your VAT is handled correctly, professionally, and on time.

Real Example (Hypothetical Scenario)

Business Type: Small construction company
Problem: DIY VAT returns led to errors with reverse charge VAT
Result: HMRC penalty and cash flow issues
Solution: They switched to The Infinity Group
Outcome:
Correct VAT treatment
No more penalties
Stress-free VAT submissions
More time to focus on growth

Final Verdict: DIY or Professional Services?

Here’s the reality:

• DIY is only safe if your VAT is very simple and you have time and knowledge.
• For most UK businesses, VAT is too complex and too risky to handle alone.

That’s why professional VAT return services are the better long-term choice.

They save you:
Time
Money
Stress
Penalties

And give you:
Accuracy
Compliance
Expert advice
Peace of mind

Final Thoughts

VAT is not just paperwork—it is a legal responsibility. The smallest mistake can lead to expensive consequences. In today’s digital and highly monitored tax environment, accuracy and compliance are more important than ever.

If you want your business to grow without worrying about VAT stress, outsourcing your VAT returns to a trusted specialist like The Infinity Group is the smartest and safest decision.